NEWS / Representation
WE ARE YOUR VOICE! NIBA Member Representation: Year in Review
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t’s been a busy year for NIBA’s policy and regulatory team. In addition to providing a number of submissions to the Australian Securities and Investments Commission (ASIC) on the Royal Commission reforms that came into effect this year, NIBA has also represented its members on a broad range of issues including building reform, workers’ compensation, emergency services funding, and cyber terrorism.
Western Australia Workers Compensation
NIBA provided feedback to WorkCover WA on the proposed Workers Compensation and Injury Management Bill 2021. NIBA’s submission was heavily influenced by the technical expertise and advice provided by the WA Divisional Committee working group, which included brokers from across the WA broking community. Following feedback, WorkCover WA will prepare a report for the Minister for Industrial Relations and finalise the Bill before it’s introduced to Parliament early in 2022.
New South Wales Building Reform
NIBA joined representatives from the building, insurance, emergency management, and government sectors at the Building Stronger Homes Roundtable. The roundtables – a joint initiative of the Master Builders Association (MBA) and the Insurance Council of Australia (ICA) – aimed to create a pathway towards national policies that improve property resilience. The roundtable focused on issues surrounding building codes and standards, new property developments and land-use planning.
Australian Reinsurance Pool Corporation
NIBA provided a submission to Treasury’s triennial review for the design and operation of the Australian Reinsurance Pool Corporation (ARPC). The review considered whether physical damage caused by a cyber-terrorist attack should be covered under the scheme. NIBA’s submission highlighted that while the risk of such events occurring remains low, the rise of IoT makes attacks such as these increasingly attractive. In addition, the submission noted that while the number of connected devices has increased significantly over the past few years, levels of awareness and cyber security have not always kept pace. The submission argued that it is unlikely that cover for physical cyberattacks would be able to be sourced from the commercial market and in NIBA’s view the scheme is best placed to facilitate this cover to the market.
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NSW Emergency Services Levy
Continuing the campaign for the abolition of the Emergency Services Levy (ESL) on insurance premiums, NIBA met with the NSW Minister for Finance Damien Tudehope to discuss the levy, and its impact on insurance brokers who collect the levy on behalf of foreign insurers. NIBA highlighted the significant financial burden and risk assigned to brokers when placing risks based in NSW with foreign insurers. While NIBA remains committed to advocating for the abolition of ESL, it is hoped that these issues can be addressed while larger issues around the future of ESL remain unresolved.
Northern Australia Cyclone Reinsurance Pool
NIBA provided a submission to the Treasury Taskforce preparing recommendations to the Government in relation to the proposed cyclone reinsurance pool for northern Australia.
